07-16-2025 
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Italian authorities have announced new offline features for the country’s national digital wallet, extending its functionality for millions of residents.
The new offline capability will allow users to access a range of limited features on the national digital services app without an Internet connection. The IO app serves as a digital wallet containing national identification documents and other citizens’ credentials.
The app’s updated functionalities allow it to detect offline status and automatically switch to a limited mode. In this mode, users can access their stored documents and biometrics without the need for internet connectivity.
A drop-down notification notifies the user of a poor Internet connection and advises that the validity of identification documents is tied to the last online verification via the app. Upon reconnection to the Internet, another notification nudges the user to restart the app for a full update of ID documents.
“From today, all citizens will be able to access their digital documents even without a network connection, simply by updating IO, the app for public services,” said Undersecretary of State for Technological Innovation Alessio Butti. “This innovation is a stepping stone to an effective Italian digital wallet, bringing us closer to the full implementation of the IT-wallet system.”
IO launched in late 2024 and has racked up 5.3 million users, storing nearly 10 million digital documents on the app. A close look at the metrics reveals that digital health insurance cards comprise the lion’s share of documents stored on IO, while driving licenses and disability cards come in second and third place.
Amid the latest update for the national digital wallet, the National Archive of Civil Status (ANSC) has disclosed plans to convert all civil registrations to digital formats. The authority is ditching paper-based recording of births, marriages, and deaths for digital systems.
Under the scheme, citizens can sign their civil status documents electronically without needing to visit town halls in person. Furthermore, ANSC notes that it will consolidate all existing digital records into one national repository, giving municipalities an 18-month timeline for adopting digital civil registrations.
Embracing digitization for key sectors of the economy
While authorities are making progress with digital IDs, the Italian government is focused on integrating emerging technologies into public services. Recently, Italy and India inked a bilateral agreement to collaborate on scientific research involving quantum computing and artificial intelligence (AI).
Amid the rush to embrace the technologies, the government is still proceeding with a measure of caution. Italian authorities banned the Chinese AI model DeepSeek for failing to meet regulatory standards after launching a probe into data scraping by AI companies.Tanzania advocates digitalization through VAT cuts
Elsewhere, Tanzania has slashed the value-added tax (VAT) applicable to electronic payments by 2% in line with its national objective of embracing digitalization.
The government confirmed the reduction in an amendment to the 2025 Finance Act, updating its VAT framework to boost digital payment metrics. The change tapers VAT on electronic payments from 18% to 16%, a policy decision hailed by consumers and enterprises.
The new VAT rate will be applicable from September 1 and will apply to payments made through the applicable channels. All bank payments to persons in Mainland Tanzania are considered electronic and will incur a 16% VAT.
Furthermore, transfers made through electronic payment systems approved by the Commissioner General of the Tanzania Revenue Authority (TRA) will also attract a 16% VAT. To remain eligible for the new rate cut, enterprises must maintain evidence of the electronic transaction in e-receipts.
The report notes that the TRA may issue new guidelines for keeping receipts in the event of tax audits. The amended law empowers the Commissioner General to issue rules for the type of enterprises and transfers eligible for the new VAT rate cuts.
Tanzanian authorities say the primary goal of the VAT cut is to reduce the reliance on cash transactions while triggering a spike in the number of digital payment channels. The authorities are eyeing a surge in the “formalization of small and medium-sized businesses” by incentivizing the adoption of digital payments.
Despite the range of advantages, critics are still poking holes in the rate cuts. Pundits say the rural-based enterprises will face operational challenges given the absence of standard payment infrastructures.
There is also the uphill climb of B2C enterprises adjusting their point-of-sale (PoS) and accounting systems to handle different VAT rates. Experts say a dual-rate VAT system will lead to a raft of unintended consequences, including accounting errors and heightened regulatory action.
A keen attempt to boost digitalization
While digital payments tie their bootlaces in the country, the Tanzanian government has turned its gaze to central bank digital currencies (CBDC). Previously, CBDC experiments in the African country have inched forward while a national digital ID scheme is cantering toward a full-scale launch.
Tanzania is not the only nation cutting VAT rates to turbocharge digital payments. In 2024, Thailand announced a VAT removal on digital currency trading in a law designed to operate retroactively for the Southeast Asian country.
Watch: Importance of digitalization for enterprises
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